Last Thursday’s signals produced a profitable long trade following the bullish pin candle/inside candle combination rejecting the support level identified at 1.1780.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
Long entry following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1650.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1789 or 1.1826.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
EUR/USD Analysis
The long-term bullish trend technically remains in force, but over the medium term the picture is bearish, with the price dominated by the bearish trend line shown in the chart below. However, we can see that there is a medium-term bullish trend line which has supported the price through three touches, suggesting a new upwards movement could be about to begin. If the price breaks this supportive trend line, it would be a bearish sign. If the price starts to move up and can break past the nearest resistance level at 1.1789, this would be a bullish sign. There is no doubt that the flow of price is bearish, and it is far from turning bullish yet.
There is nothing significant due today concerning either the EUR or the USD.